Engie Brasil Energia (OTCMKTS:EGIEY – Get Free Report) and ReNew Energy Global (NASDAQ:RNW – Get Free Report) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Engie Brasil Energia and ReNew Energy Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Engie Brasil Energia | 0 | 0 | 1 | 0 | 3.00 |
| ReNew Energy Global | 0 | 0 | 4 | 0 | 3.00 |
ReNew Energy Global has a consensus price target of $8.94, suggesting a potential upside of 52.26%. Given ReNew Energy Global’s higher possible upside, analysts clearly believe ReNew Energy Global is more favorable than Engie Brasil Energia.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Engie Brasil Energia | 40.50% | 35.70% | 8.38% |
| ReNew Energy Global | 4.17% | 3.36% | 0.48% |
Insider and Institutional Ownership
43.6% of ReNew Energy Global shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Engie Brasil Energia and ReNew Energy Global’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Engie Brasil Energia | $2.15 billion | 2.98 | $686.99 million | $1.05 | 7.49 |
| ReNew Energy Global | $1.16 billion | 1.89 | $50.00 million | $0.12 | 48.92 |
Engie Brasil Energia has higher revenue and earnings than ReNew Energy Global. Engie Brasil Energia is trading at a lower price-to-earnings ratio than ReNew Energy Global, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Engie Brasil Energia has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Summary
Engie Brasil Energia beats ReNew Energy Global on 7 of the 13 factors compared between the two stocks.
About Engie Brasil Energia
Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
About ReNew Energy Global
ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.
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